Kavango Resources plc has raised £3.5 million from issuing a total 194.4 million new ordinary shares in two phases including to new strategic investor Arigo Capital Ltd (Rwanda).
FIRST FUNDRAISE
On 24 October, the company raised £3m by issuing 166,666,660 new ordinary shares each at 1.8 pence.
The shares were conditionally placed with institutional and other investors, including high net worth and retail investors.
The placing includes one strategic cornerstone investor, who subscribed for more than half the placing amount.
In addition, Kavango also conditionally completed a direct subscription for the issue of 8,111,105 new ordinary shares.
The new ordinary shares will represent approximately 27.7% of the enlarged share capital.
SECOND FUNDRAISE
On 25 October, the company raised a further £500,000 by issuing 27,777,777 new ordinary shares each also at 1.8 pence, or 5.99% of the capital, via a subscription to Arigo.
Following admission, the total issued share capital of the company will comprise 463,423,703 ordinary shares.
USES
After expenses, the proceeds will fund general working capital and proposed exploration work at Kavango’s projects in Botswana.